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end of 1999 to hold $5,850 of inventory that it held as of the
beginning of that year.
Baek maintained the KC account from before 1999 until
September 30, 1999, when the account was closed. During 1999,
Baek deposited into the KC account cash totaling $898,286.80.
Baek obtained most of this cash from Yoo as repayment of funds
that Yoo received through checks drawn on the KC account. Before
and during 1999, Yoo and Baek were involved in a check kiting
scheme under which they obtained cash by floating checks written
on the KC account. Pursuant to this scheme, Baek, during 1999,
wrote a total of $771,640 in checks on the KC account to either
Yoo or to one of Yoo’s businesses. Baek also wrote to other
individuals or entities checks drawn on the KC account, and he
caused those funds to be received by Yoo as well. On each day
that a check was received from Baek, Yoo attempted to and usually
did cash that check at a bank that was different from the bank
that serviced the KC account (KC bank). Before the KC bank
processed Baek’s check for payment, a time that was typically the
day after Yoo cashed the check at the other bank but, on account
of weekends and holidays, was sometimes 3 or 4 days, Yoo usually
gave Baek cash equal to the amount of the check by cashing a
check drawn on Yoo’s account. During 1999, Yoo cashed at least
99 checks totaling $867,031 that were drawn on his account, and
he gave most of those proceeds to Baek who, in turn, deposited
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Last modified: May 25, 2011